At the end of 2012, Ghana’s budget deficit was a gargantuan GH¢8.7 billion, amounting to 12.0% of GDP using the rebased GDP numbers. This is the highest recorded budget deficit in Ghana’s history. From Nkrumah through Acheampong, Rawlings and Kufuor, no government has incurred this level of budget deficit. The crux of the problem is that government spending in 2012 increased astronomically to 34.5% of GDP even though government revenues amounted to 16.1% of GDP (a gap of over 100%) for the year. The government abandoned all fiscal discipline in an attempt to win the 2012 elections. Gifts of cars, 4x4 vehicles to chiefs and opinion leaders, laptops, tractors, money etc. were extended to buy votes: * For the teachers and nursing trainees whose allowances have been stopped, we now know that it was their allowances that were being chopped nyafu nyafu during the election campaign. * For workers whose wages are in arrears and are being threatened with a freeze, we now know that it was their wages that this NDC government was chopping nyafu nyafu during the election campaign. * For contractors who are not being paid, we now know that it was their monies that this NDC government was chopping nyafu nyafu during the election campaign I could go on but the point is clear. The NDC has basically taken Ghanaians for a rough ride over the last five years. Like every government, they did not come into government with any money of their own so we must always remember that it is our money that they are chopping nyafu nyafu like that. - Dr. Mahamudu Bawumia, in a speech delivered at NPP-USA Congress.
Posted on: Sat, 18 Jan 2014 06:56:44 +0000